Trading position (short-term, our opinion; S&P 500 futures contract): In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view (since Feb. 27).
The S&P 500 continues to trade along 4.400 – is this a bottoming pattern?
The S&P 500 index gained 0.67% on Friday as it went sideways following its Thursday’s decline of 1.4%. On Friday the market bounced from the daily low of around 4,356 after a hawkish speech from the Fed Chair Powell. Recently the market was selling off on strengthening U.S. dollar, among other factors.
Stocks are expected to open 0.4% higher this morning. So the S&P 500 will likely extend its Friday’s rebound. The index continues to trade below an over month-long downward trend line as we can see on the daily chart:
Futures Contract Continues Sideways
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it is trading above the 4,400 level. The support level is now at 4,400 and the resistance level is at 4,480-4,500.
Conclusion
The S&P 500 will likely extend its Friday’s rebound this morning. However, it is still trading within a consolidation following the recent declines. The market will be waiting for a series of economic data releases this week, including tomorrow’s CB Consumer Confidence number and Friday’s monthly jobs data.
Here’s the breakdown:
- Stock prices continue to fluctuate following a month-long decline.
- The S&P 500 keeps trading along the 4,400 level.
- In my opinion, the short-term outlook is still bullish and long positions are still justified from the risk/reward point of view.
As always, we’ll keep you, our subscribers, well-informed.
Trading position (short-term, our opinion; S&P 500 futures contract): In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view (since Feb. 27).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
